The Internet has provided consumers a medium for shopping that is available twenty-four hours a day, seven days a week and 365 days a year. The Internet has also provided suppliers that ability to offer goods or services and receive orders from consumer in an automated, and potentially more cost-effective way.
There are many occasions for which a consumer may be interested in goods or services but not be able or willing to purchase the goods or services at the present time. For example, a supplier may be offering a new electronic component that may interest a consumer. The consumer may not presently have the money to purchase the new electronic component. However, the consumer may want to lock in a current favorable price or guaranty the availability of the electronic component. The consumer may also want to “lock-in” a desired price while he/she does comparison shopping on the electronic component at other locations.
As is known in the art, an option can be used to reserve a proprietary interest in an item at a future time. An option is typically a contract conveying a right to buy or sell a designated item at a specified time during a stipulated period. There are many examples of using options for financial instruments, such as stocks, bonds and other items known in the art. See for example, U.S. Pat. No. 6,049,783, entitled “Interactive Internet Analysis Method,” U.S. Pat. No. 6,024,641, entitled “Method apparatus and system for lottery gaming,” and U.S. Pat. No. 5,991,744, entitled “Method and apparatus that process financial data relating to wealth accumulations plans” U.S. Pat. No. 5,844,286, entitled “Apparatus and process for executing an expirationless option transaction,” U.S. Pat. No. 5,671,363, entitled “Private stock option account control and exercise system,” and others.
There are also examples of making conditional purchases known in the art. See for example, U.S. Pat. No. 6,041,308, entitled “System and method for motivating submission of conditional purchase offers,” U.S. Pat. No. 6,012,045, entitled “Computer-based electronic bid auction and sale system,” U.S. Pat. No. 5,897,620, entitled “Method and apparatus for the sale of airline-specified flight tickets,” U.S. Pat. No. 5,297,031, entitled “Method and apparatus for order management by market brokers” and others.
However, there are several problems associated with using options known in the art to reserve a proprietary interest in a product at a future time. One problem is that unlike securities products (e.g., stocks, bonds, etc.) which are limited in number, there are far too many types of diverse products available on the Internet to logistically and effectively create one set of mutually agreeable contract terms for options to be used for such products.
Another problem is that options typically are created to protect a high-value, high-volume, high-risk products against price volatility. Price volatility is generally not large enough for most consumer or business products to use options. Without large price volatility, there is typically no incentive for a supplier to supply options for low volume, low margin, or low risk products.
Another problem is that options typically have uniform terms set by a central governing agency (e.g., the Security Exchange Commission). Such uniform terms are typically not suitable for an individual supplier of a product. A supplier may desire to provide his/her own option terms for specific products to help manage his/her inventory, risk or revenue.
Another problem is that the Internet and other computer networks have generic, everyday, consumer or business products available to consumers worldwide. However, options have typically not been available on such products.
Another problem is that suppliers may want to sell options on products that are not fully developed or don't even exist yet. Presently, option systems do not allow an option to be purchased for a product that does not exist or may never exist.
Another problem is that the Internet and other computer networks have provided the ability for suppliers to use new e-commerce business models to supply products. Options typically have not been used to support new e-commerce business models.
Another problem is that options typically have been used only for goods and not for services. A consumer may desire to purchase an option for a type of service (e.g., accounting services, a musical performer's services, an actor's services, etc.).
Another problem is that purchased electronic options typically have not been automatically exercised when a consumer purchases a good or service associated with the purchased electronic options.
Thus, it is desirable to provide a method for using options for goods or services that is available on a computer network, such as the Internet. The method should make it easy and convenient for a purchaser to buy an option on goods or services to reserve a right to purchase desired goods or services with option terms set by a supplier of the goods or services.